Landlord possession cases have surged significantly as landlords accelerate eviction activity ahead of the introduction of the Renters’ Rights Act on 1 May. This rise reflects landlords’ efforts to use existing possession routes before the removal of Section 21 notices, which currently allow repossession without fault.

Sharp Increase in Possession Instructions

Data from Landlord Action reveals a 60% increase in possession instructions in March compared with the same month last year. Enquiries to the firm rose by 75%, marking the largest monthly increase it has recorded. This surge is attributed to landlords taking action before the Renters’ Rights Act abolishes Section 21 and shifts possession cases to a court-led process.

Landlords Responding to Uncertainty

Paul Shamplina, founder of Landlord Action, commented, “This is exactly what we said would happen. As Section 21 is phased out, landlords are acting now while they still have certainty, because many are not confident in what replaces it.” He highlighted widespread confusion among landlords about how possession procedures will operate under the new law, alongside concerns about compliance, court delays, rent arrears, and rising mortgage costs.

“That combination is pushing landlords into making decisions earlier than they otherwise would,” Shamplina added. Some landlords are opting to leave the sector entirely, while others are reclaiming possession now to avoid potential difficulties in the future. He warned that although possession activity will slow after the reforms take effect, much of the impact will have already occurred, with good landlords exiting the market and tenants losing homes in situations where previously no action would have been taken.

Trends in Possession Cases

In the first quarter of the year, possession instructions increased by 32% year-on-year, while enquiries rose by 23%. The rate of instructions is outpacing enquiries, indicating that landlords who had previously delayed action are now proceeding more swiftly. Section 21 notices still dominate the possession work handled by Landlord Action, being used nearly three times as often as Section 8 notices in March.

Impact of Section 21 Removal

Section 21 instructions rose by 43% in the first three months compared to the previous year. When Section 21 is removed, these cases will transfer to Section 8, which requires court involvement. This shift will increase the number of possession claims entering the courts, many of which would not have needed court proceedings under Section 21.

The transition from an administrative to a court-driven process will lengthen timelines and introduce more procedural steps for both landlords and tenants. This change is expected to place additional strain on court resources and complicate possession proceedings.

What this means for landlords

Landlords face a period of adjustment as possession processes become more complex and time-consuming. The removal of Section 21 means repossession will no longer be straightforward, requiring landlords to navigate court procedures that may involve delays and increased compliance obligations. This has already prompted some landlords to exit the market or accelerate possession actions to avoid future uncertainty.

Understanding the new legal framework and preparing for longer possession timelines will be essential for landlords and agents. The evolving landscape underscores the importance of clear communication with tenants and careful management of arrears and compliance to minimise risks.

Source: Based on reporting from Property118

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